Wednesday, October 10, 2012

India Pepper market cornered; trend positive in futures


Last Updated : 10 October 2012 at 09:30 IST
KOCHI (Commodity Online): If information from traders is anything to go by, the Indian pepper markets have been cornered by a single party. As on Monday “the said party owns 80-85% of stocks in the NCDEX warehouse.” a trader had said.

Meanwhile, Kochi witnessed sales at the rate of Rs.410-415/Kg for 100 tons in pepper (ungarbled) on Tuesday. No sales occurred in garbled variety as per traders. “The trend cannot be predicted as markets have been cornered by a group.” a trader said.

Kochi spot markets witnessed no sales for pepper on Monday. There were sellers for ungarbled pepper at the rate of 411/Kg for about 40 tons. But the buyers insisted on Rs.408-409/Kg. In effect the sales did not materialise.

Tuesday futures

NCDEX pepper November futures opened Tuesday at Rs. 43150, touched a low of Rs.42940, a high of Rs.43650 and closed at Rs.43285.

Dematted stock as on October 8 2012; Monday is 3750 tons in NCDEX and quantity in process for the same day is 363 tons.

Pepper traded with a positive momentum in the intraday session on futures. Major support and resistance are at Rs.42900 and Rs.43800 respectively. “It may trade with a positive sentiment unless it breaks the support at Rs. 42900” our in-house analysts said.

Global trends

Reports suggest that Vietnam farmers are neither willing to sell pepper at lower price nor wanting to compete with other origins until their new crop comes by early next year.Brazil crop is also expected to be lower and exporters will not sign contracts in anticipation of the crop as they did it last season. Hence there will not be adequate supply of pepper for the period from September to December from these origins.

Meanwhile, market was stronger and prices increased at all origins. In Lampung and Belem as well as Brazil the market was active and price of black pepper at these sources rose by 5-6% locally this week.

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